{Included in the Budget speech for the year 2017-18}


I.   Introduction


MSMEs occupy an important and strategic space in economic growth and equitable development of our State.  They are the driving force behind a large number of innovations and contribute to the growth of the economy through employment creation, investment and export.  MSMEs play a key role in the utilization of resources of the State, thereby ensuring the value addition of our agricultural products and other resources.


Several schemes supporting the MSMEs both financially and technically are being implemented by the State Government and that results the acceleration of the growth of MSME Sector in the State.  Comparing the 10 industrial potential states of our country the status of Kerala comes top in the percentage of the number of MSMEs and employment generation against population.


Even if the general circumstances are as above, when an entrepreneur taking a decision to start a manufacturing / service enterprises, there lies some risk factors also. Whatever be the preparation taken by the entrepreneurs, he may not succeed in achieving the expected results due to different reasons beyond his/her control. A government having social concern cannot close the eye against the reality. In the Budget speech for the year 2017-18 an amount of Rs. 1 crore has been earmarked towards the Social Security Fund Trust. Hence it is proposed to introduce an Insurance scheme as a social security scheme for entrepreneurs and their families.

II. The Scheme


It is expected that there will be approximately one lakh entrepreneurs eligible to be insured under this scheme. The scheme will be a combination of Government of India’s Social Security Pradhan Manthri Jeevan Jyothi Bima Yojana (SSPMJJBY) and Group Insurance Scheme of Life Insurance Corporation of India


      ·         To provide insurance coverage to MSME entrepreneurs of Kerala State.

o    Up on death of a member during the term of the cover, on admission of claim by LIC, the sum assured shall become payable.

  •            To provide scholarships to the children

o    In addition to the life cover scholarships are paid to the children of the members studying in 9th Std. to 12th Std.


The benefits will as shown below:- 



Claim Amount


Death due to accident



Normal Death



Partial Disability



Permanent Disability



In addition to the above lives Cover, on death to the tune of Rs.5,000/- will be released on funeral expenses. This benefit is extended as a standalone Group Insurance Scheme along with the Social Security Scheme as detailed above.


 i)    The proposal envisages implementing a Group Insurance Scheme for the Proprietors of Micro Small and Medium Enterprises (MSMEs) in Kerala who have filed EM Part II/Udhyog Aadhar under MSME Development Act.

ii)   All MSMEs having constitution as Proprietary are included in the scheme.

iii)     The beneficiary should employ at least 2 employees other than the Proprietor, as certified by the General Manager, District Industries Centre.

iv)     The beneficiary’s unit should have been working continuously for 3 financial years prior to the financial year in which application submitted.

v)      The beneficiary should be in the age group of 18 to 50 years on 1st April of the financial year in which application is submitted.

vi)     The scheme will be a combination of Government of India’s Social Security Pradhan Manthri Jeevan Jyothi Bima Yojana (SSPMJJBY) and Group Insurance Scheme of Life Insurance Corporation Of India




     I.        The premium rate will be Rs.200/- per year out of which the entrepreneur’s share will be Rs.100/- and Government of Kerala share will be Rs.100/-


    II.        The above rate will be reviewed over in every three year based on the experience of the scheme and can be continued as long as Government of India continue social security Pradhan Manthri Jeevan Jyothi Bima Yojana (SSPMJJBY) Scheme.


  III.        Initially one year suicide clause and 45 days lien clause will not be imposed as the premium is paid by Government of Kerala. However on revised of the claim experience the same can be reviewed.


   IV.        Other benefits of SSPMJJBY Scheme shall be extended to the policy holder under the scheme.


    V.        The guidelines of SSPMJJBY Scheme shall also be applicable.


Details of social security Pradhan Manthri Jeevan Jyothi Bima Yojana (SSPMJJBY) Scheme.

The scheme will be a one year cover, renewable from year to year, Insurance Scheme offering life insurance cover for death due to any reason. The scheme would be offered / administered through LIC and other Life Insurance companies willing to offer the product on similar terms with necessary approvals and tie ups with Banks for this purpose. Participating banks will be free to engage any such life insurance company for implementing the scheme for their subscribers.


Benefits: Rs.2 lakhs is payable on member’s death due to any reason


Scope of coverage: All savings bank account holders in the age 18 to 50 years in participating banks will be entitled to join. Aadhar would be the primary KYC for the bank account.


Eligibility Conditions:  The savings bank account holders of the participating banks aged between 18 years (completed) and 50 years (age nearer birthday)



Sl. No.




Total number of entrepreneurs to be covered under the scheme

One Lakh


Annual premium per beneficiary

Rs. 200/


Total annual premium required

200 Lakh

   Source of funds 

Sl. No.




Amount provided as per the Budget speech for the year 2017-18

100 lakh


Contribution from the beneficiaries @ Rs.100/

100 lakh



200 Lakh






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